The Houston-based midstream asset developer signed a 20-year deal with Devon Energy in which Crestwood will gather and process Oklahoma City-based Devon Energy’s natural gas production from 20,500 acres. Crestwood says the deal is expected to close in the third quarter.

The pipeline system and processing plant Crestwood is buying are located in West Johnson County, were built in 2006 and are close to its own gathering system.

In addition, Crestwood declared a quarterly distribution of 50 cents per unit for the second quarter payable Aug. 10. That’s a 9 percent increase over the same period last year.

Crestwood also said it has begun a 4 million common unit public offering, and underwriters will be granted permission to sell an additional 600,000 common units to cover over-allotments. The company will use proceeds to pay off debt under its current revolving credit facility, and it expects $90 million of the repaid debt to be reborrowed and used to pay for the Barnett Shale acquisition.

Collin Eaton covers banking, finance and securities for the Houston Business Journal.

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